-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NWwofcG9SvTL61pZdsFVDCaPWmHmc2Re4HiHslMyLXblSrBdYG9N4Hn1kpkCKJ8r gU9nk38IMMgGZiu0GCoGug== 0000320321-98-000066.txt : 19980630 0000320321-98-000066.hdr.sgml : 19980630 ACCESSION NUMBER: 0000320321-98-000066 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980629 SROS: NYSE SROS: PHLX FILER: COMPANY DATA: COMPANY CONFORMED NAME: SEAGULL ENERGY CORP CENTRAL INDEX KEY: 0000320321 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 741764876 STATE OF INCORPORATION: TX FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: SEC FILE NUMBER: 001-08094 FILM NUMBER: 98657165 BUSINESS ADDRESS: STREET 1: 1001 FANNIN STE 1700 STREET 2: 1001 FIRST CITY TOWER CITY: HOUSTON STATE: TX ZIP: 77002-6714 BUSINESS PHONE: 7139514700 MAIL ADDRESS: STREET 1: 1001 FANNIN, SUITE 1700 STREET 2: 1001 FIRST CITY TOWER CITY: HOUSTON STATE: TX ZIP: 77002-6714 FORMER COMPANY: FORMER CONFORMED NAME: SEAGULL PIPELINE CORP DATE OF NAME CHANGE: 19830815 11-K 1 SEAGULL THRIFT PLAN 11-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 11-K (Mark One) [X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1997 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 2-72014 A. Full title of the plan and the address of the plan, if different from that of the issuer named below: Seagull Thrift Plan B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: SEAGULL ENERGY CORPORATION 1001 Fannin, Suite 1700 Houston, Texas 77002-6714 SEAGULL THRIFT PLAN ANNUAL REPORT ON FORM 11-K FOR THE YEAR ENDED DECEMBER 31, 1997 INDEX Page Financial Statements and Exhibits: Number -------------- Financial Statements Independent Auditors' Report........................................................ 1 Statements of Net Assets Available for Plan Benefits................................ 2 Statements of Changes in Net Assets Available for Plan Benefits..................... 3 Notes to Financial Statements....................................................... 4 Supplemental Schedules.................................................................. 12 Signatures.............................................................................. 14 Exhibits: Consent of Independent Auditors......................................................... 16
NOTE: Plan financial statements have been prepared in accordance with Item 4 under "Required Information" of Annual Report on Form 11-K. INDEPENDENT AUDITORS' REPORT THE ADMINISTRATIVE COMMITTEE SEAGULL THRIFT PLAN: We have audited the accompanying statements of net assets available for plan benefits of the Seagull Thrift Plan (the "Plan") as of December 31, 1997 and 1996, and the related statements of changes in net assets available for plan benefits for each of the years in the two-year period ended December 31, 1997. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 1997 and 1996, and the changes in net assets available for plan benefits for each of the years in the two-year period ended December 31, 1997, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of assets held for investment purposes and reportable transactions are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, as amended. The supplemental schedules have been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ KPMG Peat Marwick LLP Houston, Texas June 19, 1998 Seagull Thrift Plan Statements of Net Assets Available for Plan Benefits (Amounts in Thousands Except Share Data) December 31, -------------------------------------- 1997 1996 ------------------ ---------------- Investments at fair value: Seagull Energy Corporation common stock, 267,212 shares and 208,407 shares, respectively, (cost $5,763 and $3,785, respectively).................... $ 5,511 $ 4,592 Mutual funds (cost $16,258 and $11,916, respectively) .................... 18,146 13,024 Money market fund......................................................... 2,768 2,721 Participant loans......................................................... 866 588 ------------------ ---------------- 27,291 20,925 Cash and cash equivalents.................................................... 119 - Contributions receivable from employer....................................... 126 113 ------------------ ---------------- Net assets available for plan benefits....................................... $ 27,536 $ 21,038 ================== ================
See accompanying Notes to Financial Statements. Seagull Thrift Plan Statements of Changes in Net Assets Available for Plan Benefits (Amounts in Thousands) Year Ended December 31, -------------------------------------------- 1997 1996 ------------------- ------------------ Investment income: Dividends.............................................................. $ 354 $ 323 Interest from: Participant loans.................................................... 58 48 Other................................................................ - 8 Long-term capital gain distributions................................... 932 1,123 Short-term capital gain distributions.................................. 48 262 Other ................................................................. 11 - ------------------- ------------------ Net investment income.............................................. 1,403 1,764 Net realized gains (losses) on: Seagull common stock .................................................. 14 (185) Other investments ..................................................... 384 (148) Net unrealized appreciation (depreciation) of: Seagull common stock .................................................. (259) 285 Other investments...................................................... 1,891 313 ------------------- ------------------ Net Plan income.................................................... 3,433 2,029 Contributions: Company matching....................................................... 1,303 948 Participant............................................................ 3,490 1,910 ------------------- ------------------ Total contributions................................................ 4,793 2,858 Withdrawals and terminations.............................................. (1,728) (2,381) ------------------- ------------------ Net increase....................................................... 6,498 2,506 Net assets available for plan benefits: Beginning of year...................................................... 21,038 18,532 ------------------- ------------------ End of year............................................................ $ 27,536 $ 21,038 =================== ==================
See accompanying Notes to Financial Statements. SEAGULL THRIFT PLAN NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ACCOUNTING BASIS. The accompanying financial statements of the Seagull Thrift Plan (the "Plan") are prepared on the accrual basis of accounting. GLOBAL MERGER. On October 3, 1996, the shareholders of Seagull Energy Corporation ("Seagull" or the "Company") and Global Natural Resources Inc. ("Global") approved a merger of a wholly owned subsidiary of Seagull into Global (the "Global Merger"). As a result of the Global Merger, the employees of Global became eligible to participate in the Plan, effective January 1, 1997, and the Plan was amended to give such employees credit for their service with Global. EXPENSES. All expenses incident to the administration of the Plan and related trust fund (the "Trust Fund") may be paid by Seagull and, if not paid by the Company, are paid by the Plan. In both 1997 and 1996, the Company elected to pay all such expenses, although the Company, at its option, can discontinue this practice at any time. INVESTMENTS. On each valuation date, as such term is defined in the Plan, securities held by the Plan are valued at fair value based upon published market prices, and the increase or decrease in the fair value of securities held, plus any net income or loss of the Plan, is allocated to the participants' accounts. Security transactions are recorded on a trade-date basis and realized and unrealized investment gains and losses are determined separately based on average revalued cost (the weighted average of the fair value of the shares or units held at the beginning of the plan year and the historical cost of the shares of units acquired since the beginning of the plan year). Realized gains and losses reported on withdrawals of securities by participants are based on the difference between fair values of the withdrawn securities at the valuation date and average revalued cost to the participant. USE OF ESTIMATES. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and additions and deductions to net assets available for plan benefits during the reporting period. Actual results could differ from those estimates. 2. PLAN PURPOSE AND DESCRIPTION The purpose of the Plan is to provide a convenient means for the Company's employees to provide additional security for their retirement by investing in securities of the Company and in other investments and to provide a means by which participating employees may elect to defer the receipt of a percentage of their base compensation. Effective September 1, 1996, the Plan was amended and restated to incorporate all existing amendments and make certain other technical amendments. SEAGULL THRIFT PLAN NOTES TO FINANCIAL STATEMENTS The Plan incorporates a qualified cash or deferred arrangement within the meaning of Section 401(k) of the Internal Revenue Code of 1986, as amended (the "Code"). The Plan allows the employee to defer the receipt of an integral percentage from 1% to 14% of his compensation beginning the first day of the month coincident with or immediately following the completion of one hour of service, not to exceed the annual limit on "Cash or Deferred Contributions" ($9,500 in 1997 and 1996) imposed by Section 402(g) of the Code. The annual limit for 1998 is $10,000. Such Cash or Deferred Contributions are deemed to be contributions by the Company for all purposes. With respect to each participating employee who has completed one year of service with the Company, the Company contributes as of the end of each month "Company Matching Contributions" in an amount equal to 100% of the Cash or Deferred Contributions made on behalf of such participating employee not in excess of 6% of his compensation during such month. Pursuant to provisions of the Plan prior to January 1, 1987, participating employees could make after-tax contributions to the Plan ("Member Contributions"). The Plan provides for an additional optional annual contribution to the Plan by the Company at the discretion of its Board of Directors ("Company Discretionary Contributions") and, if necessary to satisfy applicable provisions of the Code, an additional contribution on behalf of "non-highly compensated" participants. For the years ended December 31, 1997 and 1996, no such contributions were made. At December 31, 1997, participants could elect to have contributions, both Cash or Deferred and Company Matching Contributions, invested in one or more of the available funds, which are described in Note 4. Upon termination of employment prior to age sixty-five for reasons other than total and permanent disability or death, a participant is entitled to receive 100% of his Cash or Deferred, Member and Rollover Contributions, if any, as well as earnings (or losses) attributable thereto. The participant is also entitled to receive a percentage of the value of the Company Matching Contributions and Company Discretionary Contributions, if any, and earnings (or losses) attributable thereto ("Company Contribution Account") in accordance with the following vesting schedule: Years of Percentage of Company Contribution Vesting Service Account to be Distributed - ---------------------------------------------------- ----------------------------------------------------- Less than 2 years 0% 2 years 25% 3 years 40% 4 years 55% 5 years 70% 6 years 85% 7 years or more 100%
SEAGULL THRIFT PLAN NOTES TO FINANCIAL STATEMENTS Effective March 20, 1998, the Plan was amended to reflect the following vesting schedule: Years of Percentage of Company Contribution Vesting Service Account to be Distributed - ---------------------------------------------------- ----------------------------------------------------- Less than 1 year 0% 1 year 20% 2 years 40% 3 years 60% 4 years 80% 5 years or more 100%
One thousand or more hours of service during a calendar year constitutes a year of vesting service for such employee. For terminations prior to age sixty-five due to total and permanent disability, death and terminations on or after age sixty-five, a participant is considered fully vested and receives 100% of the balance in his Company Contribution Account. Forfeitures are applied to reduce the Company's Matching Contributions next coming due. For the year ended December 31, 1997 and 1996, $48,000 and $45,000, respectively, of forfeitures were applied to reduce the Company's Matching Contributions. The Company has the power to terminate the Plan at any time. If the Plan is terminated, a participant will be considered fully vested in the balance of his Company Contribution Account and distribution of all account balances will occur in accordance with the provisions of the Plan. 3. DISTRIBUTIONS During the years ended December 31, 1997 and 1996, 51 and 59 participants, respectively, terminated employment with the Company and accordingly received distributions from the Plan. The distributions made during 1997 and 1996 were as follows: 1997 1996 ------------------ ---------------- (Amounts in thousands except share amounts) Cash $1,495 $2,326 Seagull Energy Corporation Common Stock (1,996 and 411 shares in 1997 and 1996, respectively) 40 4 ------------------ ---------------- $1,535 $2,330 ================== ================
SEAGULL THRIFT PLAN NOTES TO FINANCIAL STATEMENTS The above distributions include the terminated employees' vested portion of the Company Contribution Account. During the years ended December 31, 1997 and 1996, five and one participants, respectively, withdrew portions of the balances of their Member Contribution Accounts or Cash or Deferred Accounts totaling, $145,000 and $6,000, respectively, as permitted by the Plan. 4. INVESTMENT PROGRAMS Funds in which current contributions are invested are as follows: Seagull Stock Fund - A fund invested in the common stock of the Company. Fidelity Magellan Fund - A mutual fund seeking capital appreciation by investing primarily in common stocks and securities convertible to common stocks. Fidelity Advisor Intermediate Bond Fund - Mutual fund seeking income through investments in investment-grade, fixed income securities. Equity Income Fund - A mutual fund seeking income by investing in income-producing common stocks, preferred stocks and convertible securities. Fidelity Advisor Growth Opportunities Fund - A mutual fund seeking long-term capital growth through investments in growth, cyclical and value stocks and securities convertible to common stocks. Franklin Balance Sheet Investment Fund - A mutual fund seeking capital appreciation and income through securities which represent intrinsic values not reflected in the current market price of such securities and/or present opportunities for high income. Templeton Foreign Fund - A mutual fund investing in stocks and debt obligations of companies and governments outside the United States. Money Market Fund - A fund invested in such general money market investments (other than common stock or other securities of the Company) as the Plan's trustee may determine. At December 31, 1997, the Seagull Stock Fund, the Fidelity Magellan Fund, the Equity Income Fund, the Fidelity Advisor Growth Opportunities Fund and the Money Market Fund each represented greater than five percent of Plan assets. SEAGULL THRIFT PLAN NOTES TO FINANCIAL STATEMENTS Participants may elect to participate in more than one fund. The following table summarizes the number of employees participating in each fund at December 31, 1997 and 1996: December 31, ---------------------------------------------- Fund 1997 1996 - ------------------------------------------------------------------- -------------------- -------------------- Seagull Stock Fund 260 245 Fidelity Magellan Fund 348 325 Fidelity Advisor Intermediate Bond Fund 50 35 Fidelity Advisor Growth Opportunities Fund 196 155 Equity Income Fund 314 307 Franklin Balance Sheet Investment Fund 140 105 Templeton Foreign Fund 118 96 Money Market Fund 219 235
5. FEDERAL INCOME TAXES On April 22, 1997, the Internal Revenue Service (the "IRS") issued a determination letter to the effect that the Sixth Amendment to the Plan, generally effective January 1, 1995, and the amendment and the restatement of the Plan, effective September 1, 1996, met the requirements of Section 401(a) of the Code. Subsequent to the adoption of the restatement of the Plan, the Plan has been amended (i) as required by the Agreement and Plan of Merger by and among Seagull, GNR Merger Corporation, a wholly owned subsidiary of Seagull, and Global dated as of July 22, 1996, (ii) as required by the Small Business Job Protection Act of 1996 and the Taxpayer Relief Act of 1997, and (iii) to revise the vesting schedule. Within the time period specified by Section 401(b) of the Code, an application will be submitted to the IRS for a determination as to the qualified status of the Plan these amendments. The Administrative Committee of the Plan and the Company believe the Plan is currently designed and operated in compliance with the applicable requirements of the Code. Because the Plan is a qualified plan under Section 401(a) of the Code, a participant in the Plan is not subject to federal income taxes on the participant's share of contributions to the Plan by the Company or the participant's share of income earned by the Plan until it is withdrawn by or distributed to the participant. In addition, the Trust Fund is exempt from taxation under Section 501(a) of the Code, and the Company is entitled to deduct for federal income tax purposes the amount of its contributions to the Plan. Seagull Thrift Plan Notes to Financial Statements 6. Participant Directed Investments The Plan provides for participant directed investments of their contributions. The following identifies amounts relating to participant directed programs for net assets available for plan benefits at December 31, 1997 and 1996 and changes in net assets available for plan benefits for the years then ended. Allocation of Plan Assets and Liabilities to Investment Programs (Amounts in Thousands except Share and Unit Data) - -------------------------------------------------------------------------------- Fidelity Seagull Fidelity Advisor Equity Stock Magellan Intermediate Income Fund Fund Bond Fund Fund ------- --------- ----------- --------- December 31, 1997: Investments - at fair value: Seagull common stock (cost $5,763).. $ 5,511 $ - $ - $ - Mutual funds (cost $16,258)......... - 7,889 481 6,114 Money Market Fund................... - - - - Participant loans................... 119 283 20 141 ------- --------- ----------- --------- Total investments............... 5,630 8,172 501 6,255 Cash and cash equivalents............. - 41 - 78 Contributions receivable from employer 21 33 2 26 ------- --------- ----------- --------- Net assets available for plan benefits $ 5,651 $8,246 $ 503 $ 6,359 ======= ========= =========== ========= Number of units or shares............. 267,212 82,810 45,373 237,352 ======= ========= =========== ========= December 31, 1996: Investments - at fair value: Seagull common stock (cost $3,785).. $ 4,592 $ - $ - $ - Mutual funds (cost $11,916)......... - 6,751 133 5,527 Money Market Fund................... - - - - Participant loans................... 133 205 1 99 ------- --------- ----------- --------- Total investments............... 4,725 6,956 134 5,626 Cash and cash equivalents............. - - - - Contributions receivable from employer 23 42 1 25 ------- --------- ----------- --------- Net assets available for plan benefits $ 4,748 $6,998 $ 135 $ 5,651 ======= ========= =========== ========= Number of units or shares............. 208,407 83,705 12,632 252,133 ======= ========= =========== =========
Allocation of Plan Assets and Liabilities to Investment Programs (Amounts in Thousands except Share and Unit Data) - -------------------------------------------------------------------------------- Fidelity Franklin Advisor Balance Growth Sheet Templeton Money Opportunities Investment Foreign Market Fund Fund Fund Fund Total ------------- ---------- --------- --------- ------- December 31, 1997: Investments - at fair value: Seagull common stock (cost $5,763).. $ - $ - $ - $ - $ 5,511 Mutual funds (cost $16,258)......... 1,842 1,112 708 - 18,146 Money Market Fund................... - - - 2,768 2,768 Participant loans................... 59 60 17 167 866 ------------- ---------- --------- --------- ------- Total investments............... 1,901 1,172 725 2,935 27,291 Cash and cash equivalents............. - - - - 119 Contributions receivable from employer 17 9 5 13 126 ------------- ---------- --------- --------- ------- Net assets available for plan benefits $ 1,918 $ 1,181 $ 730 $ 2,948 $27,536 ============= ========== ========= ========= ======= Number of units or shares............. 43,402 33,169 71,183 2,768,331 ============= ========== ========= ========= December 31, 1996: Investments - at fair value: Seagull common stock (cost $3,785).. $ - $ - $ - $ - $ 4,592 Mutual funds (cost $11,916)......... 355 86 172 - 13,024 Money Market Fund................... - - - 2,721 2,721 Participant loans................... 22 1 - 127 588 ------------- ---------- --------- -------- ------- Total investments............... 377 87 172 2,848 20,925 Cash and cash equivalents............. - - - - - Contributions receivable from employer 4 2 2 14 113 ------------- ---------- --------- --------- ------- Net assets available for plan benefits $ 381 $ 89 $ 174 $ 2,862 $21,038 ============= ========== ========= ========= ======= Number of units or shares............. 10,067 3,027 16,602 2,720,716 ============= ========== ========= =========
Seagull Thrift Plan Notes to Financial Statements Statement of Changes in Net Assets Available for Plan Benefits (Amounts in Thousands) - -------------------------------------------------------------------------------- Fidelity Seagull Fidelity Advisor Equity Stock Magellan Intermediate Income Fund Fund Bond Fund Fund ------- --------- ----------- --------- Year Ended December 31, 1997: Investment income: Dividends ................................. $ - $ 100 $ 16 $ 55 Interest from: Participant loans ....................... 9 16 - 11 Other ................................... - - - - Long-term capital gain distributions ...... - 419 - 349 Short-term capital gain distributions ..... - - - - Other ..................................... - - - 10 ------- --------- ----------- --------- Net investment income ................... 9 535 16 425 Net realized gain on: Seagull common stock ...................... 14 - - - Other investments ......................... - 190 1 145 Net unrealized appreciation (depreciation) of: Seagull common stock ...................... (259) - - - Other investments ......................... - 1,003 5 745 ------- --------- ----------- --------- Net Plan income ......................... (236) 1,728 22 1,315 Contributions: Company matching .......................... 224 331 21 282 Participant ............................... 491 684 80 561 ------- --------- ----------- --------- Total Contributions ....................... 715 1,015 101 843 Withdrawals and terminations ................ (322) (551) (8) (322) Transfers among funds ....................... 746 (944) 253 (1,128) ------- --------- ----------- --------- Net increase ............................ 903 1,248 368 708 Net assets available for plan benefits: Beginning of year ......................... 4,748 6,998 135 5,651 ------- --------- ----------- --------- End of Year ............................... $5,651 $8,246 $503 $6,359 ======= ========= =========== =========
Seagull Thrift Plan Notes to Financial Statements Statement of Changes in Net Assets Available for Plan Benefits (Amounts in Thousands) - -------------------------------------------------------------------------------- Fidelity Franklin Advisor Balance Growth Sheet Templeton Money Opportunities Investment Foreign Market Fund Fund Fund Fund Total ------------- ---------- --------- --------- ------- Year Ended December 31, 1997: Investment income: Dividends ................................. $ 20 $ 11 $ 23 $ 129 $ 354 Interest from: Participant loans ....................... 6 3 2 11 58 Other ................................... - - - - - Long-term capital gain distributions ...... 96 56 12 - 932 Short-term capital gain distributions ..... - - 48 - 48 Other ..................................... 1 - - - 11 ------------- ---------- --------- --------- -------- Net investment income ................... 123 70 85 140 1,403 Net realized gain on: Seagull common stock ...................... - - - - 14 Other investments ......................... 34 12 2 - 384 Net unrealized appreciation (depreciation) of: Seagull common stock ...................... - - - - (259) Other investments ......................... 158 52 (72) - 1,891 ------------- ---------- --------- --------- -------- Net Plan income ......................... 315 134 15 140 3,433 Contributions: Company matching .......................... 152 86 62 145 1,303 Participant ............................... 741 360 265 308 3,490 ------------- ---------- --------- --------- -------- Total Contributions ....................... 893 446 327 453 4,793 Withdrawals and terminations ................ (204) (14) (67) (240) (1,728) Transfers among funds ....................... 533 526 281 (267) - ------------- ---------- --------- --------- -------- Net increase ............................ 1,537 1,092 556 86 6,498 Net assets available for plan benefits: Beginning of year ......................... 381 89 174 2,862 21,038 ------------- ---------- --------- --------- -------- End of Year ............................... $1,918 $1,181 $730 $2,948 $27,536 ============= ========== ========= ========= ========
Seagull Thrift Plan Notes to Financial Statements Statement of Changes in Net Assets Available for Plan Benefits (Amounts in Thousands) - -------------------------------------------------------------------------------- Fidelity Seagull Fidelity Advisor Equity Stock Magellan Intermediate Income Fund Fund Bond Fund Fund ------- --------- ----------- --------- Year Ended December 31, 1996: Investment income: Dividends ................................. $ - 98 1 $ 89 Interest from: Participant loans ....................... 10 18 - 8 Other ................................... 1 1 - 4 Long-term capital gain distributions ...... - 936 - 187 Short-term capital gain distributions ..... - 243 - 9 ------- --------- ----------- --------- Net investment income ................... 11 1,296 1 297 Net realized gain on: Seagull common stock ...................... (185) - - - Other investments ......................... - (430) (1) 282 Net unrealized appreciation (depreciation) of: Seagull common stock ...................... 285 - - - Other investments ......................... - (38) - 356 ------- --------- ----------- --------- Net Plan income ......................... 111 828 - 935 Contributions: Company matching .......................... 202 395 1 219 Participant ............................... 340 645 69 409 ------- --------- ----------- --------- Total Contributions ....................... 542 1,040 70 628 Withdrawals and terminations ................ (368) (967) - (592) Transfers among funds ....................... 202 (1,386) 65 755 ------- --------- ----------- --------- Net increase ............................ 587 (485) 135 1,726 Net assets available for plan benefits: Beginning of year ......................... 4,161 7,483 - 3,925 ------- --------- ----------- --------- End of Year ............................... $ 4,748 $ 6,998 $135 $5,651 ======= ========= =========== =========
Seagull Thrift Plan Notes to Financial Statements Statement of Changes in Net Assets Available for Plan Benefits (Amounts in Thousands) - -------------------------------------------------------------------------------- Fidelity Franklin Advisor Balance Growth Sheet Templeton Money Opportunities Investment Foreign Market Fund Fund Fund Fund Total ------------- ---------- --------- --------- ------- Year Ended December 31, 1996: Investment income: Dividends ................................. $ 1 $ - $ - $ 134 $ 323 Interest from: Participant loans ....................... - - - 12 48 Other ................................... - - - 2 8 Long-term capital gain distributions ...... - - - - 1,123 Short-term capital gain distributions ..... 2 7 1 - 262 ------------- ---------- --------- --------- ------- Net investment income ................... 3 7 1 148 1,764 Net realized gain on: Seagull common stock ...................... - - - - (185) Other investments ......................... - - - - (148) Net unrealized appreciation (depreciation) of: Seagull common stock ...................... - - - - 285 Other investments ......................... (3) (5) 4 - 313 ------------- ---------- --------- --------- -------- Net Plan income ......................... - 2 5 148 2,029 Contributions: Company matching .......................... 3 1 1 126 948 Participant ............................... 56 69 53 269 1,910 ------------- ---------- --------- --------- ------- Total Contributions ....................... 59 70 54 395 2,858 Withdrawals and terminations ................ - - - (554) (2,381) Transfers among funds ....................... 322 17 115 (90) - ------------- ---------- --------- --------- ------- Net increase ............................ 381 89 174 (101) 2,506 Net assets available for plan benefits: Beginning of year ......................... - - - 2,963 18,532 ------------- ---------- --------- --------- ------- End of Year ............................... $ 381 $ 89 $ 174 $ 2,862 $21,038 ============= ========== ========= ========= =======
SEAGULL THRIFT PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES December 31, 1997 (Amounts in Thousands Except Share and Unit Data) Number of Shares Fair Description or Units Cost Value - ---------------------------------------------------------------- --------------- -------------- -------------- Seagull Energy Corporation Common Stock, $.10 par value ........ 267,212 $ 5,167 $ 5,511 (1), (2) Fidelity Magellan Fund.......................................... 82,810 6,321 7,889 (1) Fidelity Advisor Intermediate Bond Fund ........................ 45,373 476 481 Equity Income Fund.............................................. 237,352 5,120 6,114 (1) Fidelity Advisor Growth Opportunities Fund ..................... 43,402 1,686 1,842 (1) Franklin Balance Sheet Investment Fund.......................... 33,169 1,063 1,112 Templeton Foreign Fund.......................................... 71,183 778 708 Money Market Fund .............................................. 2,768,331 2,768 2,768 (1) Participant Loans, bearing interest at varying amounts between 6% and 9% maturing between 1998 and 2004.............. Various 866 866 (2) -------------- -------------- $24,245 $27,291 ============== ==============
(1) These items represent greater than five percent of plan assets. (2) Represents a party-in-interest to the Plan. See accompanying independent auditors' report. SEAGULL THRIFT PLAN ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS For the Year Ended December 31, 1997 (Amounts in Thousands Except Share and Unit Data) Total Purchase Net Realized Description Type Brokerage Fees Cost Price/Proceeds Gain/(Loss) - --------------------------------- -------- ---------------- --------- --------------------- ---------------- Seagull Stock Fund Purchase - NA $2,707 NA (*) Seagull Stock Fund Sale - $1,789 1,535 (254) (*) Fidelity Magellan Fund Purchase - NA 2,044 NA Fidelity Magellan Fund Sale - 1,771 2,098 327 Fidelity Advisor Growth Opportunites Fund Purchase - NA 2,050 NA Fidelity Advisor Growth Opportunites Fund Sale - 681 755 74 Franklin Balance Sheet Investment Fund Purchase - NA 1,271 NA Franklin Balance Sheet Investment Fund Sale - 300 310 10 Equity Income Fund Purchase - NA 1,657 NA Equity Income Fund Sale - 1,699 1,960 261 Money Market Fund Purchase - NA 1,509 NA Money Market Fund Sale - 1,463 1,463 - (*) Represents a party-in-interest to the Plan.
See accompanying independent auditors' report. SIGNATURES The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrative Committee of the Seagull Thrift Plan has duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. SEAGULL THRIFT PLAN By /s/ Gordon L. McConnell Gordon L. McConnell Member Administrative Committee June 29, 1997 EXHIBIT INDEX Exhibit Number Description Page - -------------------------------------------------------------------------------- 1. Consent of Independent Auditors 18 EX-23 2 CONSENT OF INDEPENDENT AUDITORS Exhibit 1 CONSENT OF INDEPENDENT AUDITORS The Administrative Committee Seagull Thrift Plan: We consent to the incorporation by reference in the registration statement (File No. 2-72014) on Form S-8 of Seagull Energy Corporation of our report dated June 19, 1998, relating to the statements of net assets available for plan benefits of the Seagull Thrift Plan (the "Plan") as of December 31, 1997 and 1996 and the related statements of changes in net assets available for plan benefits for each of the years in the two-year period ended December 31, 1997, which report appears in the Plan's Annual Report on Form 11-K for the fiscal year ended December 31, 1997. /s/ KPMP Peat Marwick LLP Houston, Texas June 29, 1998 -----END PRIVACY-ENHANCED MESSAGE-----